Global Markets React to Trade Deals and Earnings

The article discusses the muted market reaction to the recent U.S.-EU trade deal, with both the S&P 500 and Stoxx Europe 600 indexes showing little change. U.S. President Donald Trump announced a potential global baseline tariff of 15-20% on countries without trade agreements, which may ease uncertainty. Investors are now focusing on upcoming earnings reports from tech giants Meta Platforms and Microsoft. The article also touches on Trump's deadline for Russia to reach a peace deal with Ukraine and the emergence of Chinese tech giant Huawei's AI chips as a potential competitor to Nvidia.

The stock market closed lower on Tuesday, July 29, 2025, as investors awaited the Federal Reserve's interest rate decision on Wednesday. The S&P 500 lost 0.30%, while the Nasdaq Composite slipped 0.38%, and the Dow Jones Industrial Average fell 0.46%. Stalled trade talks with China and mixed corporate earnings contributed to the decline. Notable losers included UPS, which plunged 10% after failing to provide full-year guidance, and Eli Lilly, which sank 5% following Novo Nordisk's profit warning due to weak Wegovy sales. Despite recent progress in trade talks with Japan and the EU, UBS warned that tariffs could still negatively impact economic growth. Meanwhile, JPMorgan noted a potential 'unintended silver lining' from trade talks, suggesting that lower tariffs on U.S. exports could boost exports from other countries with Most Favored Nation status.

U.S. stock futures rose on July 28, 2025, following the S&P 500 and Nasdaq Composite's record highs on July 27. The gains came after President Trump's announcement of a U.S.-EU trade deal with 15% tariffs on European goods. Investors are awaiting further trade announcements and the Federal Reserve's interest rate decision on Wednesday. Earnings season is also in full swing, with over 150 S&P 500 companies reporting, including major tech firms. The week's economic data includes the Job Openings and Labor Turnover Survey, ADP private payrolls, and nonfarm payrolls.